Dubai Holding arm aims to sell stake in Swatch-backed retailer Rivoli -sources
DUBAI Oct 28 (Reuters) - The private equity arm of Dubai Holding, which is owned by the emirate's ruler, is planning to sell its minority stake in a luxury retailer backed by Swatch, four banking and industry sources aware of the matter said.
The unit, Dubai International Capital (DIC), is in exclusive negotiations to sell its 18 percent stake in Rivoli Group to Saudi-based Al Rajhi Capital, the investment banking and private equity arm of the kingdom's top listed lender, Al Rajhi Bank , the sources said.
The sources, who spoke on condition of anonymity, did not provide a potential value for the deal.
Swatch, the world's biggest watchmaker, owns a 40 percent stake in Rivoli, which has more than 300 outlets across the Gulf Arab region and also operates boutiques on behalf of Mont Blanc, Dunhill and Vertu, among others.
The discussions are at an advanced stage and the two parties expect to complete a deal before the year end, two of the sources said. The talks could still falter and no agreement has been reached, they added.
A spokesman for DIC in Dubai declined to comment. Al Rajhi Capital was not immediately available for comment. (Reporting by Dinesh Nair and Mirna Sleiman; Additional reporting by Marwa Rashad in Riyadh; Editing by Anthony Barker)